DECC outlines new environmental legislation after Spending Review

Environmental legislation is to be overhauled by the Department of Energy and Climate Change (DECC) following the new government Spending Review.

DECC is to refocus its outlay and re-invest in new projects after it was announced that the department will cut its resource spending by 18 per cent and its administration budget by 33 per cent by 2015, while increasing capital spending by 41 per cent in real terms.

Among the initiatives in which it will be investing is a £1 billion scheme to create one of the world's first commercial-scale carbon capture and storage demonstration plants, as well as a further £200 million for low-carbon technology projects.

Other changes outlined following the Spending Review include more targeted versions of the Warm Front and Feed-In Tariff schemes, as well as forthcoming reviews of the work done by Ofgem and the Energy Saving Trust.

Energy and climate change secretary Chris Huhne said: "Like the rest of the public sector we have taken some tough decisions, but we remain on course to deliver on our promise to be the greenest government ever."

Following the announcement, climate minister Greg Barker told BusinessGreen.com that the news will improve confidence among green investors.

Posted by Lauren Steadman